
NZ now one of the most attractive nations for mining investment
New Zealand appeared in 12th spot on the Investment Attractiveness Index in the Fraser Institute's annual Survey of Mining Companies for 2024.

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1News
2 days ago
- 1News
Rocky road predicted due to Trump's tariff expansions, not least for US
The global rollercoaster ride of US trade tariffs has entered a new phase with sobering ramifications for many countries including the US. Auckland-based Economics professor Niven Winchester explains. The global rollercoaster ride of United States trade tariffs has now entered its latest phase. President Donald Trump's April 2 'Liberation Day' announcement placed reciprocal tariffs on all countries. A week later, amid financial market turmoil, these tariffs were paused and replaced by a 10% baseline tariff on most goods. On July 31, however, the Trump Administration reinstated and expanded the reciprocal tariff policy. Most of these updated tariffs are scheduled to take effect on August 7. To evaluate the impact of these latest tariffs, we also need to take into account recently negotiated free trade agreements (such as the US-European Union deal), the 50% tariffs imposed on steel and aluminium imports, and tariff exemptions for imports of smartphones, computers and other electronics. ADVERTISEMENT For selected countries, the reciprocal tariffs announced on April 2 and the revised values of these tariffs are shown in the table below. The revised additional tariffs are highest for Brazil (50%) and Switzerland (39%), and lowest for Australia and the United Kingdom (10%). Table: The Conversation; Source: Niven Winchester (Source: Supplied) For most countries, the revised tariffs are lower than the original ones. But Brazil, Switzerland and New Zealand are subject to higher tariffs than those announced in April. In addition to the tariffs displayed above, Canadian and Mexican goods not registered as compliant with the US-Mexico-Canada Agreement are subject to tariffs of 35% and 25% respectively. Economic impacts The economic impacts of the revised tariffs are examined using a global model of goods and services markets, covering production, trade and consumption. A similar model was used to assess the impacts of the original reciprocal tariffs and the outcome of a US-China trade war. ADVERTISEMENT GDP impacts of the tariffs are displayed in the table below. The impacts of the additional tariffs are evaluated relative to trade measures in place before Trump's second term. Retaliatory tariffs are not considered in the analysis. Table: The Conversation; Source: Niven Winchester (Source: Supplied) An economic own goal The tariffs reduce US annual GDP by 0.36%. This equates to US$108.2 billion or $861 per household per year (all amounts in this article are in US dollars). The change in US GDP is an aggregate of impacts involving several factors. The tariffs will compel foreign producers to lower their prices. But these price decreases only partially offset the cost of the tariffs, so US consumers pay higher prices. Businesses also pay more for parts and materials. Ultimately, these higher prices hurt the US economy. ADVERTISEMENT The tariffs decrease US merchandise imports by $486.7 billion. But as they drive up the cost of US supply chains and shift more workers and resources into industries that compete with imports, away from other parts of the economy, they also decrease US merchandise exports by $451.1 billion. The morning's headlines in 90 seconds, including the West Auckland builder sentenced over massive meth haul, fire on a commuter train, and how Bluey could teach kids about resilience. (Source: 1News) Global impacts For most other countries, the additional tariffs reduce GDP. Switzerland's GDP decreases by 0.47%, equivalent to $1,215 per household per year. Proportional GDP decreases are also relatively large for Thailand (0.44%) and Taiwan (0.38%). In dollar terms, GDP decreases are relatively large for China ($66.9 billion) and the European Union ($26.6 billion). Australia and the United Kingdom gain from the tariffs ($0.1 billion and $0.07 billion respectively), primarily due to the relatively low tariffs levied on these countries. Despite facing relatively low additional tariffs, New Zealand's GDP decreases by 0.15% ($204 per household) as many of its agricultural exports compete with Australian commodities, which are subject to an even lower tariff. ADVERTISEMENT Although the revised reciprocal tariffs are, on average, lower than those announced on April 2, they are still a substantial shock to the global trading system. Financial markets have been buoyant since Trump paused reciprocal tariffs on April 9, partly on the hope that the tariffs would never be imposed. US tariffs of at least 10% to 15% now appear to be the new norm. As US warehouses run down inventories and stockpiles, there could be a rocky road ahead. Niven Winchester is a Professor of Economics, Auckland University of Technology, New Zealand. This article was republished from The Conversation under a Creative Commons Licence.


National Business Review
2 days ago
- National Business Review
US-EU strike 15% trade tariff deal; aid airdrops reach Gaza
Kia ora and welcome to your Monday summary of global business and political news. First to developing news, and the United States and European Union have reached a trade deal in the past several hours ahead of the August 1 deadline, the BBC reported. US President Donald Trump and European Commission President Ursula von der Leyen held talks in Scotland that involved "tough negotiations". The European Union faced a 30% tariff from August, but von der Leyen confirmed that had dropped to 15% across the board. "We have reached a deal. It's a good deal for everybody," Trump said overnight. "It's going to bring us closer together ... it's a partnership in a sense." Von der Leyen said it was a "huge deal" following careful and tough negotiations. Meanwhile, Trump does not expect to reach a deal with Canada, after hard balling on both sides to carve out an agreement, the BBC said. Canadian Prime Minister Mark Carney said his country would not accept a 'bad deal' or rush into an agreement. Canadian Prime Minister Mark Carney. In China, industrial profits fell for a second consecutive month, amid competition and US tariffs, Bloomberg reported. Profits fell 4.3% last month, compared with a year earlier, after a 9.1% fall in May. Exports to the US fell, which squeezed profit margins for Chinese manufacturers. That also risked a decline in business confidence and flow through to lower investment and jobs. In the Middle East, Israel started a 'tactical pause' in fighting in three areas of Gaza to address the declining humanitarian situation, Al Jazeera reported. The suspension of military operations from 10am to 8pm local time every day was until further notice. The military also said it would designate secure routes to help aid agencies deliver food and other supplies. Aid airdrops into Gaza, including packages of flour, sugar, and canned food, were delivered over the weekend. French President Emmanual Macron said his country would formally recognise a Palestinian state in September, at the annual UN General Assembly. BBC correspondent Lyse Doucet said that recognition was largely symbolic and profoundly political. The US and Israel condemned the move. Palestinians welcomed the pledge by France and urged other countries to do the same, Al Jazeera reported. 'We hope it will be implemented, and we hope that most or all countries around the world will follow France's lead in recognising the Palestinian people's right to an independent state,' Nabil Abdel Razek, a resident of Ramallah in the occupied West Bank, told AFP. Gaza kids charity organisation distributes food. In other news, Intel planned to proceed with plans to cut 15% of its global workforce, as the chipmaker attempts a turnaround, CNN reported. CEO Lip-Bu Tan said that turnaround would take time, but there were 'clear opportunities' to improve its performance. Intel said the staff cuts were 'designed to create a faster-moving, flatter and more agile organisation'. The company also said it's scrapping projects in Germany and Poland as part of its cost cutting measures. Airline manufacturer Boeing faced the risk of strike action after union workers rejected an offer that would boost their salaries by 20% over four years, Bloomberg reported. The International Association of Machinists and Aerospace Workers voted overwhelmingly against the new terms. The proposal 'fell short of addressing the priorities and sacrifices' of the company's skilled workforce, the union said. 'Our members are standing together to demand a contract that respects their work and ensures a secure future.' Finally, Meta CEO Mark Zuckerberg announced Shengjia Zhao, the co-creator of OpenAI's ChatGPT, was appointed as chief scientist of Meta Superintelligence Labs, CNBC reported. Zuckerberg announced the Meta Superintelligence Labs initiative in June. Zhao will work directly with Zuckerberg. 'Shengjia has already pioneered several breakthroughs including a new scaling paradigm and distinguished himself as a leader in the field,' Zuckerberg said. 'I'm looking forward to working closely with him to advance his scientific vision.'


Newsroom
2 days ago
- Newsroom
NZ now one of the most attractive nations for mining investment
Pro-industry policies have shot New Zealand up the rankings of the world's most mining-friendly countries, according to a survey carried out by a Canadian think tank. New Zealand appeared in 12th spot on the Investment Attractiveness Index in the Fraser Institute's annual Survey of Mining Companies for 2024.